Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Supply and Consideration

HM Revenue & Customs
, see all updates

Whether supplies are goods or services: Distinguishing between purchase and hire agreements: Credit charges

It is common for most agreements to include a credit charge. Provided this has been clearly identified in the agreement, it is a separate supply of exempt services. Where the credit charge is not separately identifiable however, all monies payable under the terms of agreement will constitute consideration for the supply of the goods.